Box Company budgeted to sell 226,000 units of Zbox in September. Production of one unit of Zbox requires three pounds of aluminum and five pounds of steel powder.

Box Company budgeted to sell 226,000 units of Zbox in September. Production of one unit of Zbox requires three pounds of aluminum and five pounds of steel powder. The beginning inventory and the desired ending inventory are as follows:

	Beginning Inventory		Desired Ending Inventory
Zbox	37,000	units	26,000	units
Aluminum	43,000	pounds	36,000	pounds
Steel powder	39,000	pounds	44,000	pounds

How many pounds of steel powder does Box Company need to purchase during September if Box plans to manufacture 163,000 units of Zbox in September?

Expert Solution

Pounds of steel powder does Box Company need to purchase during September if Box plans to manufacture 163,000 units of Zbox in September

= Required steel powder pounds + Ending steel powder pounds - Beginning steel powder pounds

= (1,63,000 units*5 pounds per unit) + 44,000 pounds - 39,000 pounds

= 8,20,000 pounds

Pounds of steel powder does Box Company need to purchase during September are 8,20,000 pounds.

Junaid answered 2 years ago

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Question

Box Company budgeted to sell 226,000 units of Zbox in September. Production of one unit of Zbox requires three pounds of aluminum and five pounds of steel powder.

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